# In the matter of Paytail Commerce Private Limited

> NCLT judgment dated 2024-08-12. Citation: TCN-2024-NCLT-00837. The petition was filed by Amit Jain, the Financial Creditor, under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 12 Aug 2024
- **Citation:** TCN-2024-NCLT-00837
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/paytail-commerce-private-limited-e07fe4eb

## Summary

### Background

The petition was filed by Amit Jain, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Paytail Commerce Private Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs. 1,04,50,000/-, including interest at 12% per annum. The Corporate Debtor is a private limited company incorporated on 07.09.2020. The Financial Creditor extended loans of Rs. 50 Lakhs as per loan agreements dated 30.06.2023 and 31.07.2023, totaling Rs. 1 Crore. The Financial Creditor exercised his right to call for interest payment, but the Corporate Debtor failed to make payment even after an extension. The Financial Creditor issued a final notice, but the Corporate

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## Facts

Amit Jain, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Paytail Commerce Private Limited, the Corporate Debtor. The claim was for a default of Rs. 1,04,50,000/-, including interest at 12% per annum. The Corporate Debtor is a private limited company incorporated on 07.09.2020. Loan agreements dated 30.06.2023 and 31.07.2023 show that the Financial Creditor extended loans of Rs. 50 Lakhs, totaling Rs. 1 Crore, to the Corporate Debtor. The Financial Creditor sent a notice on 16.10.2023 calling for interest payment, but the Corporate Debtor sought an extension until 15.11.2023, which was granted. However, the Corporate Debtor failed to make the

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## Issues and analysis

### Issue 1: Whether the present petition filed is …

**Ratio:** The limitation period for filing a petition under Section 7 of the IBC is three years

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**Reasoning:** The Financial Creditor contended that the date of default is 09.12.2023, and the present

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**Interpretation:** The Adjudicating Authority considered the date of default as stated by the

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**Application:** Since the petition was filed on 25.01.2024, and the date of default was

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## Parties

- **Judges:** Harnam Singh…; Ashish…
- **Appellants:** Amit…
- **Respondents:** Paytail Commerce…

## Timeline

- **2020-09-07 — Incorporation of…**: Paytail Commerce Private…
- **2021-03-24 — Financial Creditor…**: Financial Creditor acquired a 7.5% stake in the Corporate Debtor by making a payment of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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